Sat, May 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Asia ex-Japan's mutual fund assets to reach all-time high in 2010, signaling quickest recovery

Friday, February 05, 2010
Opalesque Industry Updates - . Asia ex-Japan's mutual fund assets are set to reach more than US$1.1 trillion by the end of 2010, exceeding their 2007 all-time peak. This region leads the global recovery, according to the latest issue of the Cerulli Edge—Asia-Pacific Edition, a quarterly publication dedicated to this region. The rise would represent a rally of more than 54% from 2008 levels—a year when the swinging impact of the global financial crisis wiped US$350 billion off Asia ex-Japan's mutual fund assets.

The recovery in 2009 was largely due to rapidly rising stock markets rather than improved net new investment, but if asset markets remain stable, investor flows are expected to improve in 2010.

“It would be wrong to gloss over the crisis-induced 2008 bust too lightly,” said Sunil Jagtiani, associate director at Cerulli Associates. “It was undoubtedly a uniquely painful event. In Asia, it is definitely time to look forward, not back. We expect Asia's asset management industry to make up the ground lost in the financial crisis more quickly than many other parts of the world,” he said.

One of the consequences of the financial crisis is that the opportunities across the key mutual fund markets in Asia ex-Japan are better balanced. In 2007, China's mutual fund assets were double that of its nearest rival, South Korea. They were also 334% larger than India's and 305% larger than Taiwan's.

But these percentages changed drastically in 2009. China's mutual fund assets were 28% bigger than South Korea's, 140% larger than India's and 235% greater than Taiwan's. This change was due to a few possible factors. The rival nations to China lost less assets, recovered more strongly, or a combination of both.

Global managers would do well to consider this change carefully, and note that institutional asset gathering opportunities are also increasing in the Asia ex-Japan sector, such as in the pension sector.

Other findings from this issue include:

Asia ex-Japan is set to surpass its 2007 peak level of mutual fund assets in 2010 as the region leads the global recovery, with flows set to improve if markets stay stable.

China continues to boast the region's biggest mutual fund market, but its lead over its nearest rivals has been drastically cut by the financial crisis, indicating a more balanced opportunity set.

Institutional business is growing in significance, with some firms tilting resources and manpower to better serve the sector, thereby building a more balanced asset management business.

To receive a copy of the issue, please contact Marketing& Business Development at CAmarketing@cerulli.com or +1 617-437-0084. kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  4. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year

  5. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit